PCT Ltd (PCTL)

[skitahoe]

Evaluate,

You're right on the money, if annual earnings are $4 million, with a fast growing company a P/E of 30 is justified, so $.21 would be roughly the share price, depending on dilutive action, which Gary indicated wouldn't be great.

If we look at it another way, for each million we earn, it should be worth slightly over a nickel in share price.

I believe that Gary was being very conservative in his estimate, I don't know if anything, or how much of the $4 million came from the U.K. agreement. In fact, no one seems certain if he was speaking of $4 million in only equipment sales, and the fluid sales were not being included.

If a nickel in share price is justified by a million in earnings, to make the Nasdaq at $2, which we could probably qualify for, would require earning $40 million, that's ten times what he stated, yet he was quoted as saying the Nasdaq this year was a goal, and previously said he didn't intend to do a reverse split. Clearly, either he was extremely conservative, or misunderstood in his earnings estimate, or he was very overly optimistic in his belief the Nasdaq was possible this year.

I hate to say it, but weeks ago I suggested that he shouldn't do a podcast until after all required financial had been issued. I believe that not having them behind him gagged him in terms of what he could say. Those reports will be out in the next two weeks, but if they're on time the second quarter will be out in roughly six to eight weeks from now, I'd encourage him to do another podcast after it's released, or even better, have a company webcast to discuss quarterly results.

Quarterly webcasts are the sign of a successful company, most Nasdaq companies do them. The cost of doing such a webcast is no doubt higher than appearing on a podcast, but the credibility of doing it may prove very worthwhile in increasing investor interest in the company.

Gary